In recent years, Westinghouse Electric Corporation has made great strides in advancing tubular solid oxide fuel cell (SOFC) technology towards commercialization by the year 2001. In 1993, Westinghouse initiated a program to develop a ＇MWe-Class＇ (1-3 MWe) pressurized SOFC (PSOFC)/gas turbine (GT) combined cycle power system for distributed power applications because of its (1) ultra-high efficiency (similar to 63% net AC/LHV CH4), (2) its compatibility with a factory packaged, minimum site work philosophy, and (3) its cost effectiveness. Since then two cost studies on this market entry product performed by consultants to the US Department of Energy have confirmed Westinghouse cost studies that fully installed costs of under $1300/kWe can be achieved in the early commercialization years for such small PSOFC/GT power systems. The paper will present the results of these cost studies in the areas of cell manufacturing cost, PSOFC generator manufacturing cost, balance-of-plant (BOP) cost, and system installation cost. In addition, cost of electricity calculations will be presented.